The price of gold increased on Thursday morning in Asia. It reached the peak in one week because the investors thought about the further US stimulus progress and its inflation data which was declining under a lot of people’s expectations. That was surprising.
The gold commodity rose by 0.42% to $1.729. Furthermore, the USD still on its trend to reverse from that commodity. That main currency was slightly declined on Thursday. Data released on Wednesday stated that the US international price increased.
It increased by 0.1% from month to month in February. That was under the expectation of 0.2%, but it was not changed from the 0.1% noted in January. The price rises by 1.3% from year by year. It is slower than the growth expectation of 1.4 percent.
A Chance for Gold
An expert said that there is a little chance for gold when the CPI number is coming smoother. The dollar jump can be handled and the amount of result stops rising. Those become positive supporters for that commodity so far in the global market and sales.
That data is declining the base of the US treasury result and the dollar seems to give up on its increase which was happened before. It was because of the expectation that the inflation will be pushed higher and reaching more than 2 percent as a target from the Fed.
The American house of representatives on Wednesday gave their final agreement on the $1.9 trillion stimulus package. It increases the hope for better economic recovery in the United States due to the COVID-19 pandemic. The investors also wait for the Central Bank.
The trend of gold is still declining. The analysts still see the real result of the treasury that supports the condition higher. It is truly supported by the optimism around the economic recovery and also expectations in several points. That Bank must release its support.
Other Commodity’s Movement
Elsewhere, some other commodities also show their movement. The silver price rises by 0.1 percent. The platinum also increases by 0.4%. Vice versa, the palladium decreases by 0.4%. The changes can be also seen in the oil. It increased on Wednesday.
The cause was the optimism prediction for global economic recovery and because the US fuel stock was so bad. However, the price is limited by the abundant amount of raw oil stocks after the cold weather situation that happened in Texas last month.
The Brent oil was closed at $ 67.90 per barrel. That increased by 38 cents or 0.6 percent. Meanwhile, the West Texas Intermediate of US was also closed at $ 64.45 per barrel or rose up by 43 %. It was actually increased by 0.7%.
The American fuel stock decreased by 11.9 million per barrel last week. That was happened sharply than what the analysts expected as it was shown in voting made by Reuters. That was created for each declined by 3.5 million barrels.
The Hope for Global Economic Recovery
The global economy which was hit by the pandemic will be recovered soon with the 5.6 percent growth this year and it is going to be developed by 4% next year. An organization called OECD said about that in a temporary economy prospect.
The last prediction was 4.2% this year. The price of oil continues to rise for several months since the OPEC+ organization maintains its stock limitation. Before, that touched $ 70 per barrel at the beginning of this week. Brent was smoothly decreased.
Most of the members of the OPEC+ last week agreed to cut the production in April. The foreign minister of Saudi Arabia stated that the palace and Russia wanted a fair oil price. Furthermore, they will continue to have good cooperation as well.
